OPERATING LEASE COMMITMENTS

6 Months Ended

Jun. 30, 2013

Notes to Financial Statements

Note 4. OPERATING LEASE COMMITMENTS

 The Company leases approximately 37,000 square feet of manufacturing, laboratory and office space in a single-story building located in Franklin, Massachusetts under a lease expiring October 31, 2017 and approximately 1,060 square feet of residential space as a corporate apartment in Franklin, Massachusetts under a lease expiring July 24, 2014.

The Company also leases approximately 7,900 square feet of corporate office space in a multi-story building located in Philadelphia, Pennsylvania under a lease expiring May 31, 2017.

 Future minimum lease payments for each of the next 5 years under these operating leases are as follows:

	Franklin		Philadelphia		Total
For the period ending June 30,
2013	$	226,000	$	93,000	$	319,000
2014		447,000		187,000		634,000
2015		444,000		192,000		636,000
2016		454,000		196,000		650,000
2017		382,000		82,000		464,000
Total	$	1,953,000	$	750,000	$	2,703,000

 The Company’s facilities lease expense, including accruals for lease incentives, was approximately $99,000 and $74,000 for the three months ended June 30, 2013 and 2012, respectively, and $389,000 and $151,000 for the six months ended June 30, 2013 and 2012, respectively.